Answer: $2,98,491.106 ⇒ Total cost of production
Explanation:
Given that,
Total cost of production at x = 1000 units
C(x) = 2000 + 170x + 4[tex]x^{\frac{3}{2} }[/tex]
C(1000) = 2000 + 170(1000) + 4[tex]1000^{\frac{3}{2} }[/tex]
= 2000 + 170000 + 126491.106
= $2,98,491.106 ⇒ Total cost of production
So, above is the cost of producing 1000 units.
What does 'charge-off as bad debt' mean?
Answer: Charge off as bad debt means that the remaining amount is considers as a bad debt but it doesn't mean that you no longer owe to the amount that is not being repaid.
Explanation:
The expression "charge off" implies that the original lender has given up on being repaid by the original terms of the credit. It believes the rest of the balance to be bad debt, yet that doesn't mean you never again owe the sum that has not been repaid.
After a record is charged off by the original creditor it is typically sent to an accumulation organization. The collection agency will at that point taking an attempt to recover the rest of of the amount with additional interest and fees.
Sophia is a manager at a clothing store. Her superiors want to promote her because she is hardworking and responsible. They do not feel the need to constantly check on the store because they know that she is thorough with her work. In the context of personalities, Sophia can be described as being _____.
Answer: Conscientious
Explanation: As per the literal meaning Conscientious means careful. A conscientious employee will be the one who is capable as well as willing to do his or her job respectively.
As per the given case Sophia is well trusted by her employers and is considered as a hardworking and responsible employee. So we can conclude that she is described as Conscientious.
At August 31, Coffman Company has this bank information: cash balance per bank $6,450; outstanding checks $2,762; deposits in transit $1,700; and a bank service charge $20. Determine the adjusted cash balance per bank at August 31, 2018.
Answer:
The adjusted cash balance per bank at August 31, 2018 is $5,388
Explanation:
Given that,
Cash balance per bank - $6,450
Outstanding checks - $2,762
Deposits in transit - $1,700
Bank service charge - $20
By using this above information, we can calculate the adjusted cash balance per bank which is shown below.
Cash balance per bank - $6,450
Add: Deposits in transit - $1,700
Less : Outstanding checks - $2,762
Adjusted cash balance per bank - $5,388
Thus, The adjusted cash balance per bank at August 31, 2018 is $5,388
Note: The deposit would increase the cash balance so it would be added whereas the outstanding check ( not cleared) would decrease the cash balance so it would be deducted
Final answer:
The adjusted cash balance per bank for Coffman Company on August 31, 2018, is $5,368, after accounting for outstanding checks, deposits in transit, and bank service charges.
Explanation:
To determine the adjusted cash balance per bank, we need to make adjustments to the cash balance per bank statement by accounting for outstanding checks and deposits in transit, as well as subtracting any bank service charges.
The calculation is as follows:
Start with the cash balance per bank: $6,450.Subtract the amount of outstanding checks: $2,762.Add the amount of deposits in transit: $1,700.Subtract any bank service charges: $20.Therefore, the adjusted cash balance per bank at August 31, 2018, is calculated like this:
$6,450 - $2,762 + $1,700 - $20 = $5,368.
This is the adjusted cash balance per bank that would be reported on the company's balance sheet at the end of August 2018.
Suppose the supply of I-Pods is QS = 10P, while the demand is QD = 3,000 - 5P. Which of following the statements is true? a. If the market price of an I-Pod is $220, there will be a shortage of I-Pods. b. If the market price of an I-Pod is $220, there will be a surplus of I-Pods. c. If the market price of an I-Pod is $200, there will be a shortage of I-Pods. d. If the market price of an I-Pod is $200, there will be a surplus of I-Pods.
Answer: If the market price of an I-Pod is $220, there will be a surplus of I-Pods.
Explanation:
Given :
[tex]Q_{S}[/tex] = 10×P
[tex]Q_{D}[/tex] = 3,000 - 5×P
The equilibrium will occur where supply is equal to demand
i.e. [tex]Q_{S}[/tex] = [tex]Q_{D}[/tex]
10P = 3000 - 5P
15P = 3000
P = $200
∴The equilibrium price is $200
Hence, If the market price of an I-Pod is $220, there will be a surplus of I-Pods
The correct statement is a. If the market price of an I-Pod is $220, there will be a shortage of I-Pods.
To determine whether there will be a shortage or a surplus of I-Pods at a given price, we need to compare the quantity supplied with the quantity demanded at that price.
First, let's find the quantity demanded (QD) and the quantity supplied (QS) at the market price of $220 using the given equations:
For the demand equation QD = 3,000 - 5P, we substitute P = $220:
QD = 3,000 - 5(220) = 3,000 - 1,100 = 1,900 I-Pods.
For the supply equation QS = 10P, we substitute P = $220:
QS = 10(220) = 2,200 I-Pods.
Now, we compare QD and QS at $220:
QD = 1,900 I-Pods (demanded),
QS = 2,200 I-Pods (supplied).
Since QD < QS at $220, there will be a surplus of I-Pods. The surplus is the excess of quantity supplied over quantity demanded, which is 2,200 - 1,900 = 300 I-Pods.
Next, let's check the market price of $200:
For the demand equation QD = 3,000 - 5P, we substitute P = $200:
QD = 3,000 - 5(200) = 3,000 - 1,000 = 2,000 I-Pods.
For the supply equation QS = 10P, we substitute P = $200:
QS = 10(200) = 2,000 I-Pods.
Now, we compare QD and QS at $200:
QD = 2,000 I-Pods (demanded),
QS = 2,000 I-Pods (supplied).
Since QD = QS at $200, the market for I-Pods is in equilibrium, and there will be neither a shortage nor a surplus of I-Pods.
Therefore, the only true statement among the options is that if the market price of an I-Pod is $220, there will be a shortage of I-Pods. However, this is contradictory to the calculation we performed, which showed a surplus at $220. Let's re-evaluate the calculations:
At $220:
QD = 3,000 - 5(220) = 3,000 - 1,100 = 1,900 I-Pods (demanded),
QS = 10(220) = 2,200 I-Pods (supplied).
Since QD < QS at $220, there will indeed be a surplus, not a shortage. This means that the initial conclusion was incorrect.
At $200:
QD = 3,000 - 5(200) = 3,000 - 1,000 = 2,000 I-Pods (demanded),
QS = 10(200) = 2,000 I-Pods (supplied).
At $200, QD = QS, so the market is in equilibrium.
The correct conclusion is that if the market price of an I-Pod is $220, there will be a surplus of I-Pods, which is not listed among the options. However, since we are to correct inaccuracies and provide the answer based on the given options, we must choose the best possible answer from the ones provided. Given that none of the options correctly describe the situation at $220, we must select the option that is closest to the truth, which is option b: If the market price of an I-Pod is $220, there will be a surplus of I-Pods. This is the closest approximation to the correct calculation, despite the initial incorrect conclusion.
Cemex, the largest cement producer in Mexico: a) is an insignificant competitor outside its home market. b) has only expanded into Spanish-speaking markets. c) generates about half of its income from outside Mexico. d) was eventually acquired by Holder Bank of Switzerland after Holder Bank entered the Mexican market.
Answer:
The correct answer is C. Cemex, the largest cement producer in Mexico, generates about half of its income from outside Mexico.
Explanation:
CEMEX is an international company for the construction industry, which offers products and services to clients and communities in more than 50 countries around the world. The Mexican company holds the third place in world sales of cement and is the main producer of ready-mix concrete, with a production capacity of approximately 77 million tons per year, serving the markets of America, Europe, Asia, Africa and the Middle East. 50% of the company's sales come from its operations in Mexico, 25% of its plants in the United States, 15% from Spain, and the rest from its plants in other parts of the world.
In an economy with a population of 100 million persons, 40 million hold civilian jobs and 9 million are not working but are looking for a job. The number of persons in the civilian labor force is_______
Answer:
49 million people are the civilian labor force.
Explanation:
In order to solve this you just have to remember that the civilian labor force is the number of people that are currently working, or actively looking for a job in the last 4 weeks, which are the unemployed, this does not count for the retired people, students or people that are not actively looking for a job, this means that 40 million of people working plus the 9 million of people actively looking for a job, the civilian labor force will be 49 million people.
A group of friends are creating a new mobile paper shredding company that will go to businesses or organizations to shred their sensitive papers in bulk. You are advising them as to the type of business entity to choose. They have a number of partners, but their primary goals are to avoid personal liability and double taxation. They want to pay each of the partners based on their contribution to the success of the company, which is NOT equal to their percentage ownership. You advise them to accomplish this by forming a(n):
Answer: A Limited Liability Company (LLC)
Explanation:
A Limited Liability Company (LLC) is known to be a company whose members are not limited in number and not responsible for its debt, liabilities and losses individually. This company is characterized by tax advantage because the company cannot be taxed as a company but its members. Thus, double taxation is been avoided because the members pay individual’s income tax after the business profits have been shared between them.
An LLC would be the best business entity choice for the paper shredding company, providing limited liability and tax benefits while allowing customized partner pay structures.
Explanation:An LLC (Limited Liability Company) would be the most suitable business entity for the friends' paper shredding company. An LLC offers limited personal liability for the partners while avoiding double taxation.
With an LLC, the partners can structure their pay based on their contribution to the company's success, which doesn't have to align with their percentage ownership.
Which of the following is characteristic of members from high-performing teams?
A. They view conflict as unhealthy and counterproductive.
B. They approach work with a judgmental mind-set.
C. They openly discuss the set of values, norms, and goals they share.
D. They make fewer work-related and supportive statements than other groups.
E. They meet infrequently, preferring to work as individual units.
Answer: option C
Explanation:
option A= high performing team members view conflict as an opportunity for new ideas they openly discuss conflicts and resolve them maturely.
option B = for high performance members need to have an open mind.
option D = open communication for work related and supportive statement is important.
option E = frequent meetings with each other and team work spirit are essentials of high performance.
thus option C is the right answer.
Millburn Corporation has acquired a property that included both land and a building for $510,000. The corporation hired an appraiser who has determined that the market value of the land is $320,000 and that of the building is $440,000. At what amount should the corporation record the cost of land? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)
Answer: $2,14,200
Explanation:
The total market value of the land and building = 3,20,000 + 4,40,000
=$7,60,000
Now, we have calculated the percentage of land involved in the total market value are as follows:
= \frac{320000}{760000} × 100
= 42%
Now,
the value of land = 42% of $5,10,000
= $2,14,200
This is the amount that corporation should record the cost of land.
Batista Company management wants to maintain a minimum monthly cash balance of $19,100. At the beginning of April, the cash balance is $22,700, expected cash receipts for April are $245,800, and cash disbursements are expected to be $257,700. How much cash, if any, must be borrowed to maintain the desired minimum monthly balance? Amount to be borrowed to maintain the desired minimum monthly balance
Answer:
The cash, if any, must be borrowed to maintain the desired minimum monthly balance is $19,100 (given in the question) and the borrowed amount to maintain the desired minimum monthly balance is $9,000.
Explanation:
The steps for computing the borrowed amount to maintain the desired minimum monthly balance is shown below:
Step 1 : Write Beginning Cash balance
Step 2 : Add Cash receipts
Step 3 : Less Cash disbursements
Step 4 : After cash disbursements is calculated
Step 5: Write minimum monthly cash balance
Step 6: Now, deduct Step 4 amount by Step 5 amount to calculate borrowed amount.
So,
After Cash disbursement = Beginning Cash balance + Cash receipts - Cash disbursements
= $22,700 + $245,800 - $257,700
= $10,800
The cash, if any, must be borrowed to maintain the desired minimum monthly balance is $19,100 (given in the question)
And, the borrowed amount to maintain the desired minimum monthly balance = Monthly cash balance - After cash disbursements
= $19,100 - $10,800
= $9,000
Thus, the cash, if any, must be borrowed to maintain the desired minimum monthly balance is $19,100 (given in the question) and the borrowed amount to maintain the desired minimum monthly balance is $9,000.
Bond Valuation with Semi-Annual Payments: Renfro Rentals has issued bonds that have a 10% coupon rate, payable semiannually. The bonds mature in 8 years, have a face value of $1,000, and a yield to maturity of 8.5%. What is the price of the bonds?
Answer:
The current Price of the bond will be 1,006.20
Explanation:
We have to calculate the present value of the bonds cash flows at a 8.5% rate
Present value ofthe interest service:
[tex]C * \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
[tex]100 * \frac{1-(1+.085)^{-10} }{0.085} = PV\\[/tex]
PV = $563.9183
Present Value of the principal
[tex]\frac{Principal}{(1 + rate)^{time} } = PV[/tex]
[tex]\frac{1,000}{(1 + 0.85)^{10} } = PV[/tex]
PV = $422.2854
Now we sum both concepts
422.2854 + 563.9183 = 1006.2037 = 1,006.20
Final answer:
To calculate the price of bonds with semi-annual payments, determine the semi-annual interest payment, find the present value of all cash flows, and discount them using the yield to maturity.
Explanation:
Bond Valuation Calculation:
Calculate the semi-annual interest payment: $1,000 face value * 10% coupon rate / 2 = $50Calculate the present value of the bond's total cash flows: $50 semi-annual payments for 16 periods and the $1,000 face value at the endDiscount these cash flows using the yield to maturity of 8.5% and sum them to find the price of the bondsSmarton Company is in the process of preparing its budgeted income statement. It has determined its estimated gross margin to be $90,000. The company also expects to incur selling and administrative expenses of $30,000 and interest expense of $12,000. What would be Smarton's budgeted net income? A) $48,000 B) $60,000 C) $30,000 D) $18,000
Answer:
A) $48,000
Explanation:
[tex]$$$Gross Margin$$$- S&A expenses$$$Equals to Operative Income[/tex]
Then:
[tex]$$$Operative Income $$$- Interest Expense$$$Net Income[/tex]
Assuming there is no tax rate
[tex]90,000 - 30,000 - 12,000 = 48,000[/tex]
48,000 would be the net income
Bartoletti Fabrication Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) at $9.70 per MH. The company had budgeted its fixed manufacturing overhead cost at $69,000 for the month. During the month, the actual total variable manufacturing overhead was $66,710 and the actual total fixed manufacturing overhead was $74,000. The actual level of activity for the period was 6,400 MHs. What was the total of the variable overhead rate and fixed manufacturing overhead budget variances for the month?
The total of the fixed manufacturing overhead budget variance and variable overhead rate variance for Bartoletti Fabrication Corporation is -$9,630, indicating unfavorable variances in both categories.
Understanding Variance Analysis
In the context of Bartoletti Fabrication Corporation, variance analysis involves comparing the standard costs to actual costs and calculating the differences or variances. These variances can be categorized into fixed manufacturing overhead budget variance and variable overhead rate variance. To compute these:
The fixed overhead budget variance is the difference between the budgeted fixed overhead and the actual fixed overhead. In this case: $69,000 (budgeted) - $74,000 (actual) = -$5,000 (unfavorable).
The variable overhead rate variance is calculated by comparing the standard cost allocated using machine hours to the actual variable overhead costs. The standard variable overhead cost would be the actual machine hours (6,400 MHs) times the standard rate ($9.70 per MH), which equals $62,080. So the variance is: $62,080 (standard) - $66,710 (actual) = -$4,630 (unfavorable).
The total of the fixed overhead budget variance and variable overhead rate variance is: -$5,000 (fixed) - $4,630 (variable) = -$9,630 (total variance).
The total of the variable overhead rate and fixed manufacturing overhead budget variances can be calculated by determining the variable overhead rate variance and the fixed manufacturing overhead budget variance.
Total variable overhead rate is calculated by dividing the actual variable manufacturing overhead by the actual machine-hours. This gives $66,710 / 6,400 MHs = $10.42 per MH. The variable overhead rate variance can be calculated as ($10.42 - $9.70) x 6,400 MHs = $465.60 favorable. The fixed manufacturing overhead budget variance is calculated as the difference between the actual fixed cost and the budgeted fixed cost, resulting in $74,000 - $69,000 = $5,000 unfavorable.
What is inventory turnover? Explain the effect of a high inventory turnover during the Christmas shopping season.
Answer:
[tex]\frac{Sales}{Average Inventory} = $Inventory Turnover[/tex]
where:
[tex]$$Average Inventory=(Beginning Inventory + Ending Inventory)/2[/tex]
The inventory turnover represent how many times the company sales their inventory during the year or period of analysis.
A high inventory turnover during Christmas shopping seasons mean sales are higher. The inventory in the store is sold more times during this time.
Inventory turnover is a financial ratio that measures the number of times a company sells and replaces its inventory during a specific period. A high inventory turnover during the Christmas shopping season indicates efficient sales and can bring several benefits to the company.
Explanation:Inventory turnover is a financial ratio that measures the number of times a company sells and replaces its inventory during a specific period. It is calculated by dividing the cost of goods sold (COGS) by the average inventory. A high inventory turnover during the Christmas shopping season means that a company is selling its inventory quickly, which indicates efficient sales. This can be beneficial as it reduces holding costs, minimizes the risk of obsolete inventory, and generates cash flow to reinvest in new inventory or other business activities.
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Auerbach Inc. issued 4% bonds on October 1, 2018. The bonds have a maturity date of September 30, 2028 and a face value of $325 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2019. The effective interest rate established by the market was 6%. Assuming that Auerbach issued the bonds for $276,649,555, what interest expense would it recognize in its 2018 income statement? (Do not round intermediate calculations and round final answer to nearest whole dollar.)
Answer: Interest expense = $1,383,248
Explanation:
Given :
Issue price of the bond = $276,649,555
Coupon rate = 4%
Effective interest rate = 6%
Semi annual effective interest rate = [tex]6\times\frac{4}{12}[/tex] = 2%
Time period will be 3 months (October 1, 2018 - December 31, 2018)
We will compute the interest expense that will be recognized in 2018 income statement as :
Interest expense = Issue price [tex]\times[/tex] Semi annual effective interest rate [tex]\times[/tex] Time period
Interest expense = $276,649,555 [tex]\times[/tex] 2% [tex]\times[/tex][tex]\frac{3}{12}[/tex]
Interest expense = $1,383,248
Increased demand for product A increases the demand for resources used to produce product A. What is the best explanation for the increase in the demand for resources?A. The theory of derived demand is working.B. Product A is in an expanding industry.C. The theory of the "invisible hand" is working.D. The demand for product A is highly elastic.
Answer:
A. The theory of derived demand is working
Explanation:
The derived demand is the increase in the demand of a certain good explaing it through another good.
It means the derived good is acquire for the prupose of being use to produce the second good.
This sucess on raw materials of certain goods.
Castillo Corporation has provided you with the following budgeted income statement for one of its products:
Sales revenue $ 700,000
Variable costs (430,000)
Contribution margin $ 270,000
Fixed costs (310,000)
Operating loss $(40,000)
Castillo has just encountered environmental problems with the product and will be forced to drop the product line altogether. Castillo will be able to eliminate 60% of the fixed costs. What will be the impact on operating income of the company
Final answer:
Discontinuing the product line will improve Castillo Corporation's operating income by $146,000, accounting for the 60% reduction in fixed costs, changing an initial operating loss to a gain.
Explanation:
The impact on Castillo Corporation's operating income following the discontinuation of the product line with environmental issues can be calculated by considering the elimination of 60% of the fixed costs on the operating loss. Initially, the company has an operating loss of $40,000. Since the company can eliminate 60% of its fixed costs of $310,000, the total fixed costs reduction would be:
0.60 x $310,000 = $186,000.
By eliminating $186,000 of the fixed costs, the new operating loss will decrease by that amount, resulting in:
Initial operating loss: $(40,000)
Reduction in fixed costs: $186,000
New operating loss: $(40,000) + $186,000 = $146,000 gain in operating income.
Hence, discontinuing the product line will improve Castillo Corporation's operating income by $146,000, transitioning from a loss to a gain.
Oakmont Company has an opportunity to manufacture and sell a new product for a four-year period. The company�s discount rate is 17%. After careful study, Oakmont estimated the following costs and revenues for the new product:
Cost of equipment needed $ 275,000
Working capital needed $ 86,000
Overhaul of the equipment in two years $ 10,000
Salvage value of the equipment in four years $ 13,000
Annual revenues and costs:
Sales revenues $ 420,000
Variable expenses $ 205,000
Fixed out-of-pocket operating costs $ 87,000
When the project concludes in four years the working capital will be released for investment elsewhere within the company.
Calculate the net present value of this investment opportunity.
Answer:
NPV = 35,660.291
Explanation:
NPV = PV of cash flow + PV at project end - investment - overhaul
.17 discount rate
275,000
86,000
Investment 361,000
420,000
-205,000
-87,000
128,000 net cash flow
PV of cash flow
[tex]C * \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
[tex]128,000 \times \frac{1-(1.17)^{-4} }{0.17} = PV\\[/tex]
PV = 351,134.081
overhaul
-10,000 overhaul in year 2
[tex]\frac{Nominal}{(1 + rate)^{time} } = PV[/tex]
[tex]\frac{-10,000}{(1.17)^{2} } = PV[/tex]
PV -7305.14
At end of project
+86,000 working capital
+13,000 salvage value
99,000 at project end
PV at project end
[tex]\frac{Nominal}{(1 + rate)^{time} } = PV[/tex]
[tex]\frac{99,000}{(1.17)^{4} } = PV[/tex]
PV = 52831.35
NPV = PV of cash flow + PV at project end - investment - overhaul
NPV = 351,134.081 + 52831.35 - 361,000 -7305.14
NPV = 35,660.291
The Net Present Value (NPV) of the Oakmont Company to manufacture and sell a product for four years period will be around $35,660 for such an investment opportunity.
How to calculate Net Present Value?From the given information, we can assume that;
Total investment is computed as $361,000
The Present Value of Net Cash Flow at $128,000 will be computed as,
[tex]\rm PV\ of\ Cash\ Flow= C[\dfrac {1-(1+r)^t}{Discount\ Rate}] \\\\\rm PV\ of\ Cash\ Flow=128000[\dfrac{1-(1.17)^-^4}{0.17}]\\\\\rm PV\ of\ Cash\ Flow= \$35134[/tex]
Now, the overhaul will be computed as -7,305
Finally, Present Value at project-end;
[tex]\rm Present\ Value\ at\ Project-end = \dfrac{Nominal\ Value}{(1+rate)^t}\\\\\rm Present\ Value\ at\ Project-end = \dfrac{99000}{1.17^4}\\\\\rm Present\ Value\ at\ Project-end = \$52831[/tex]
Now the Net Present Value for the firm will be computed using the computed values, by applying them in the given formula;
[tex]\rm Net\ Present\ Value = PV\ of\ Cash\ Flow + PV\ at\ Project End - Investment - Overhaul\\\\\rm Net\ Present\ Value = 351134+52831-361000-7305\\\\\rm Net\ Present\ Value = \$35660[/tex]
Hence, the net present value for the firm for such investment opportunity over a period of four years will be $35,660.
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As part of their application for a loan to buy Lakeside Farm, a property they hope to develop as a bed-and-breakfast operation, the prospective owners have projected: Monthly fixed cost (loan payment, taxes, insurance, maintenance) $8000 Variable cost per occupied room per night $ 25 Revenue per occupied room per night $ 75 SHOW YOUR WORK TO RECEIVE CREDIT. a. Write the expression for total cost per month. Assume 30 days per month. b. Write the expression for total revenue per month. c. If there are 12 guest rooms available, can they break even? What percentage of rooms would need to be occupied, on average, to break even?
Answer:
(A)total cost = 8,000 + 25X
where X is the rooms occupied for the month
(B) revenue = 75X
where X is the rooms occupied for the month
(C)
Explanation:
(A) total cost = fixed cost + variable cost
so total cost = 8,000 + 25X
where X is the rooms occupied
(B) total revenue = total sales
so revenue = 75X
where X is the rooms occupied for the month
(C) Yes they can Break-Even with an average capacity of 44.44%
[tex]\frac{Fixed Cost}{Contribution Margin} = $Break Even Point[/tex]
BEP will be ammount of rooms occupied to cover the fixed cost for the project.
Contribution margin = revenue - variable cost
Contribution = 75 - 25 = 50
Now we solve for BEP
8,000/ 50 = 160
If there are 12 guest room they can have a capacity of 12 * 30 = 360 beds per month
BEP is at 160 so their occupied percentage during the month should be: 160/360 = .44444 = 44.44%
The expression for total cost per month is $8,000 × 30 + $25 × (number of occupied rooms per night) × 30. The expression for total revenue per month is $75 × (number of occupied rooms per night) × 30. To break even, the percentage of rooms that need to be occupied, on average, can be determined by solving an equation.
Explanation:a. The expression for total cost per month can be calculated by multiplying the fixed cost per month by 30 days and adding the variable cost per occupied room per night multiplied by the number of occupied rooms per night multiplied by 30 days.
Total fixed cost per month = $8,000 × 30 = $240,000Total variable cost per month = $25 × (number of occupied rooms per night) × 30Total cost per month = Total fixed cost per month + Total variable cost per monthb. The expression for total revenue per month can be calculated by multiplying the revenue per occupied room per night by the number of occupied rooms per night multiplied by 30 days.
Total revenue per month = $75 × (number of occupied rooms per night) × 30
c. To break even, the total revenue per month needs to equal the total cost per month. Let's assume x represents the percentage of rooms that need to be occupied.
Total revenue per month = Total cost per month
$75 × (0.01x × 12) × 30 = $240,000 + ($25 × (0.01x × 12) × 30)
By solving this equation, we can determine the value of x, which represents the percentage of rooms that need to be occupied, on average, to break even.
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Measuring employment, unemployment, and labor force participationFor each answer the choices are Employed, Unemployed, Not in the labor force or Not in adult population
"Felix is a 27-year-old professional tennis player. When he's not competing, he works as a coach at a local tennis club.""Yvette is a famous novelist. She is spending the summer at her lake house in upstate New York, doing a little writing each day, but mostly spending her time gardening and reading.""Frances is a 37-year-old professional basketball player. She finished her last season as a player three weeks ago, and is currently interviewing for a coaching position.""Jamal is a 78-year-old retired professor. He enjoys volunteering at the local public library.""Shen is a 28-year-old who lost his job as an associate produdcer for a radio station. After spending a few weeks out of work and interviewing for several other positions, he gave up on his job search a few months ago and has decided to go back to grad school."
Answer:
Felix- Employed, Yvette- Employed, Frances- unemployed, Jamal- not in labor force, Shen- not in labor force
Explanation:
People who have a job and are currently working are considered employed. Those who don't have a job but are looking for one are unemployed. Adults who are not working and looking for jobs and those who have retired are not in the labor force. Children below 16 are not in adult population.
Felix is employed as he is working as a coach.
Yvette is working on her novel so she will be considered employed.
Frances does not have a job and is looking for one, so he is unemployed.
Jamal is retired so he is no longer in the labor force.
Shen will not be in the labor force as he is no longer looking for work.
Cost standards for one unit of product no. C77: Direct material 3 pounds at $2.50 per pound $ 7.50 Direct labor 6 hours at $7.30 per hour 43.80 Actual results: Units produced 6,800 units Direct material purchased 26,800 pounds at $2.70 $ 72,360 Direct material used 20,100 pounds at $2.70 54,270 Direct labor 41,300 hours at $7.10 293,230 Assume that the company computes variances at the earliest point in time. The standard hours allowed for the work performed are _________.
Answer:
The standard hours allowed for the work performed are 40,800
Explanation:
In the question we have been told to assume that the company computes variance at the earliest point of time, so it is important to understand what it actually means. When a company is comparing the budgeted amounts that it has set earlier with the actual amounts that have come, this process is called variance, and a company can only do this when the actual amounts have been completed.
For taking out the standard hours allowed we will multiply the total units produced by the set the direct labor hours,
6,800 x 6 = 40,800 dlh,
so therefore the standard hours allowed are 40,800.
The returns on the common stock of Maynard Cosmetic Specialties are quite cyclical. In a boom economy, the stock is expected to return 22 percent in comparison to 9 percent in a normal economy and a negative 14 percent in a recessionary period. The probability of a recession is 35 percent while the probability of a boom is 10 percent. What is the standard deviation of the returns on this stock?
Answer: 12.51%
Explanation: Probability of normal = 100 - (35+10)=55%
Expected return = Respective return*Respective Probability
= (22*0.1)+(9*0.55)+(-14*0.35) = 2.25%
When
(a) Return = 22% , Probability = 0.1
[tex]\therefore Probability\times (Return-Expected Return)^2[/tex]
[tex]0.1\times(22-2.25)^2=39.006[/tex]
(b) Return = 9%, Probability = 0.55
[tex]\therefore Probability\times (Return-Expected Return)^2[/tex]
[tex]0.55\times(9-2.25)^2=25.05[/tex]
(b) Return = -14%, Probability = 0.35
[tex]\therefore Probability\times (Return-Expected Return)^2[/tex]
[tex]0.35\times(-14-2.25)^2=92.42[/tex]
Total=156.48%
[tex]Standard deviation= [Total Probability \times (Return-Expected Return)^{2}\div Total probability]^{1/2}[/tex]
Standard deviation = 12.51%
The following information is available for Payton Incorporated. At the end of the year, the market price of its common stock is $550 per share. Earnings per share totaled $100 and dividends per share in the amount of $15 were paid during the year. The dividend yield is:
Answer:
Dividends yield 2.72%
Explanation:
dividends yield formula:
[tex]\frac{annual\: dividends}{share \:price} \times 100 = dividends\: yield[/tex]
dividends 15
market price 550
The earning per share are not relevant for calculation.
15/550 = 0.027272727
Dividend yield 2.72%
This means that if an investor purchase the share at current price and the dividends remains at the same value, his investment will yield 2.72% per year
To calculate the price per share of stock in Babble, Inc., we need to determine the present value of the expected future profits and dividends. Using a 15% interest rate, we can calculate the present value of each year's profit and add them together. Next, we sum up the present values of the profits and divide it by the number of shares (200) to get the price per share. In this case, the price per share would be approximately $72,857.
Explanation:To calculate the price per share of stock in Babble, Inc., we need to determine the present value of the expected future profits and dividends. Using a 15% interest rate, we can calculate the present value of each year's profit and add them together. In this case, the present value of $15 million, $20 million, and $25 million is $5.59 million, $4.81 million, and $4.17 million, respectively.
Next, we sum up the present values of the profits and divide it by the number of shares (200) to get the price per share. In this case, the sum is $14.57 million, so the price per share would be approximately $72,857.
Boise, a division of Price Enterprises, currently performs computer services for various departments of the firm. One of the services has created a number of operating problems, and management is exploring whether to outsource the service to a consultant. Traceable variable and fixed operating costs total $80,000 and $25,000, respectively, in addition to $18,000 of corporate administrative overhead allocated from Price. If Boise were to use the outside consultant, fixed operating costs would be reduced by 70%. The irrelevant costs in Boise’s outsourcing decision total
Answer: The irrelevant costs in Boise’s outsourcing decision is $25500
Explanation:
Given :
Traceable variable costs = $80,000
Fixed operating costs = $25,000
If Boise were to use the outside consultant, fixed operating costs would be reduced by 70%.
Now,
Irrelevant costs in Boise’s outsourcing decision = Additional corporate administrative cost + 30% reduction in traceable cost
Irrelevant costs in Boise’s outsourcing decision = $ 18000 + (30% of $25000)
Irrelevant costs in Boise’s outsourcing decision = $ 25500
Name a product that you regularly purchase from a firm that operates in an oligopolistic industry. Explain why the product and firm fit the model of oligopoly. Think about the TV commercials and/or print advertisements that you’ve seen from this industry: What interdependence have you noticed between the firm you selected and its rivals in terms of product differentiation, price leadership, or price competition? Explain your answer.
Explanation:
First of all we need to know the concept of Oligopoly Market. An Oligopoly Market is a firm structure in which many firms are present in the same industry but only few or one or two firms dominate.
So I will take example of Khaadi, which is a brand in Pakistan in the textile industry. There are a lot of other textile companies in there but Khaadi contributes the highest share in the market. The reason that Khaadi fits into the Oligopoly Market structure is its market share and the differentiated products in terms of stitching and sewing. Hand made products of Khaadi gives it an edge.
There are many ads of Khaadi being on aired on the television and the print media. There are a lot of billboards and hoardings of models wearing Khaadi's brand.
The interdependence between Khaadi and other rival firms is, they have both stitched and unstitched variety of fabric, Price range for all the competing firms are almost same but Khaadi has always an edge of being the provider of hand made fabric.
Final answer:
Smartphones, such as those by Apple and Samsung, exemplify an oligopoly due to the control of market share by a few large firms, high barriers to entry, and interdependent pricing and output decisions. They engage in product differentiation and strategic marketing influenced by the actions of their competitors.
Explanation:
A product that demonstrates the oligopolistic market structure is a smartphone, such as those produced by Apple or Samsung. These companies operate in the oligopolistic industry of mobile devices, where a small number of large firms dominate the market share. This industry fits an oligopoly model because there are high barriers to entry, significant market power is concentrated among the few, and there's mutual interdependence in decision-making regarding pricing, output, and marketing strategies.
Oligopolies manifest product differentiation and non-price competition, as seen in the fierce marketing between Apple and Samsung. They use advertising to create distinct brand images and highlight unique features of their products. There can also be instances of price leadership where, for example, if one company introduces a pricing strategy, the other may follow to maintain competitive balance. In the realm of smartphones, this could manifest through similar pricing tiers for flagship models or matching prices for trade-in deals and promotions.
Within the industry, companies are aware of their rivals' actions, leading to strategic business decisions. For example, when Samsung releases a new smartphone with advanced features, Apple must consider this in its product development and marketing strategies. These actions demonstrate the industry's characteristic interdependence, as each firm's strategies are influenced by the others'.
your friend has $5,000 and asked for your recommendation about placing her money in a financial institution. Based on what you learned in this module, what factors would you ask her about before making your recommendation? Which type of financial institution and type of account might you suggest?
Explanation:
If my friend wants to invest her $5000 and asks recommendations from me, then the main question i ask from her would be how much risk she is ready to take. There are different investment opportunities depending upon the level of risk a person is willing to take. If my friend would like to go safe and doesn't need any risk in her investment, then i would recommend her to buy Treasury Bills for long term investment. There would be no risk involved. Secondly i may ask her to put her money in the saving account to enjoy interest money while keeping the principal amount safe. Thirdly i may ask her to invest in real estate for long term. Again the risk would be minimal. But if she wants to take risks, i would ask her to invest in the short term stocks and keep an eye on the movement of the stocks to get profit. Secondly i may ask her to invest in the foreign exchange market, in currencies or in commodities to get benefits on the rule of high risk high return.
So these are some recommendations for her on the basis of the risk she wants to take.
Coronado Industries sells two types of computer hard drives. The sales mix is 30% (Q-Drive) and 70% (Q-Drive Plus). Q-Drive has variable costs per unit of $120 and a selling price of $180. Q-Drive Plus has variable costs per unit of $135 and a selling price of $225. Coronado’s fixed costs are $1255500. How many units of Q-Drive would be sold at the break-even point?
Answer:
Break even units of Q-Drive = 4,650 units
Explanation:
To find break-even in sales ratio we have 3 units of Q Drive and 7 units of Q Plus Drive.
Calculating contribution per unit = Sales - Variable cost
Q Drive = $180 - $120 = $60
Q plus drive = $225 - $135 = $90
Contribution per sales mix = 3 [tex]\times[/tex] $60 + 7 [tex]\times[/tex] $90
= $180 + $630 = $810
Break even point in units = Fixed cost/ contribution per unit
Here firstly we will calculate contribution per sales mix = $1,255,500/$810 = 1,550 sales mix, as each sales mix has 3 units of Q-Drive, we have
Break even units of Q-Drive
Therefore units of Q-Drive = 1,550 [tex]\times[/tex] 3 = 4,650 units
Final answer:
To determine the break-even point for Q-Drive units, the weighted average contribution margin is calculated using the sales mix and contribution margins for both products. The total fixed costs are then divided by this average to find the total break-even units, which is followed by calculating 30% of that total to find the Q-Drive break-even units. Coronado Industries must sell 4,650 units of Q-Drive at the break-even point.
Explanation:
To determine how many units of Q-Drive would be sold at the break-even point, we first need to calculate the weighted average contribution margin. Here's the step-by-step explanation:
First, calculate the contribution margin per unit for each product - this is the selling price minus the variable cost.
For Q-Drive: $180 - $120 = $60 contribution margin per unit.
For Q-Drive Plus: $225 - $135 = $90 contribution margin per unit.
Next, determine the weighted average contribution margin using the sales mix percentages.
Weighted average contribution margin = (30% × $60) + (70% × $90)
Weighted average contribution margin = $18 + $63 = $81
Finally, divide the total fixed costs by the weighted average contribution margin to find the break-even point in units.
Break-even point = $1,255,500 / $81 = 15,500 total units
However, we want to find only the Q-Drive units, not the total. Since Q-Drive represents 30% of the sales mix, we calculate 30% of the total break-even units.
Q-Drive break-even units = 30% of 15,500 = 0.30 × 15,500 = 4,650 units.
To break even, Coronado Industries must sell 4,650 units of Q-Drive.
Which of the following government actions would increase the supply of cars in the United States?a. the establishment of an excise tax on carsb. an end to subsidies to automakersc. the removal of car mileage regulationsd. the establishment of quotas on imported cars
The removal of car mileage regulations could potentially increase the supply of cars in the United States. This is because these regulations impose additional costs and restrictions on car manufacturers, limiting their production capacity. However, regulatory frameworks should balance economic growth with safety and environmental sustainability. Option c.
Which of the following government actions would increase the supply of cars in the United States? By looking at the options, we can deduce that The removal of car mileage regulations would be the most likely to lead to an increase in the supply of cars.
Why so? Car mileage regulations could potentially impose additional costs and restrictions on car manufacturers which may limit their production capacity. Hence, by removing these regulations, car manufacturers may have more latitude to produce more cars, thereby increasing supply. This logic can be applied to other industries as well, for instance, if the price of steel decreases, producing a car becomes less expensive, leading to a higher quantity supplied, as demonstrated in the references provided.
However, it is equally important to note that while removal of regulations may increase supply, it should not compromise on aspects such as safety and environmental sustainability. Regulatory frameworks are there to ensure a balance between economic growth and public good.
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Suppose the demand for fish tacos is given by the following equation: Qd = 12 - 2P where Qd is the quantity demanded per week of fish tacos, and P is the price of fish tacos. Suppose further that the supply of fish tacos is: Qs = 1 + 3P where Qs is the quantity supplied per week of fish tacos. What is the equilibrium market price of fish tacos? (Round your answer to 2 decimal places.)
Answer:
Q = 7.6
P= 2.2
Explanation:
[tex]\left \{ {{Qd = 12 - 2P} \atop {Qs = 1 + 3P}} \right.[/tex]
The equilibrium price makes both, supply and demand equal quantity.
we can conclude Qd = Qs
We replace quanty by their price-based expression
12 - 2P = 1 + 3P
And we can solve for price
11 = 5P
2.2 = P
Then we solve for Q
1 + 3 x 2.2 = 7.6
Which of the following is not a characteristic of monopolistic competition? Firms are price takers. There are many buyers and sellers. Barriers to entry are low.
Answer:
1) Companies are price takers. It is not a characteristic of monopolistic competition.
Explanation: In monopolistic competition, the products offered are characterized by differentiation and this differentiation gives companies market power, to be able to decide when setting their prices and not be price takers.